Premier Ujjal Dosanjh commenting on the 2000/01 budget said on February 29th, 2000 "Our focus will be on today's families and their changing needs: in healthcare, in education, in the environment, and in the new economy". Since then his government has fumbled with these issues to the detriment of the real requirements of a vibrant forestry-based economy.

The future of northern BC is, and always will be dependent on the forest industry. The government needs to understand that in the developing Northern British Columbia and in exploiting its riches, the people and communities of Northern British Columbia will have a reasonable expectation that their legitimate aspirations and concerns will be addressed. The new economy in the north is the forest industry. In a recent study titled "Evolution of the North American Home Building Industry - An Opportunity for Value-Added Manufacturing Investment in B.C." prepared by Peter Woodbridge and Associates, a strong prediction is made for the growth of the forest industry in the next twenty years. They forecast growth in value from $35 billion in total softwood primary products to $200 billion in total value-added wood products. Growth of that magnitude requires fiscal policy and responsible budgeting directly targeted at stimulating the changes, technological advancement, human resource development and private investment required to achieve it.

The following barriers to the potential growth of the forest industry need to be addressed through fiscal and public policy reform, budget planning and public investment:

Forest Policy: The laws and regulation surrounding the forest and related acts are complex, convoluted, out dated and badly in need of reform. A comprehensive industrial strategy for the forest industry must be devised and implemented. Particular attention must be paid to the growth of the value-added sector. The recent forest policy review was poorly conceived and executed. It yielded nothing of value. Access to fibre, at fair and equitable prices, remains the single largest factor for all levels of the forest industry supply chain i.e. the harvesting, primary and secondary manufacturing sectors.

Stumpage: Although an integral component of forest policy, stumpage is the key to fundamental change. It is not a target revenue provider for the provincial general revenue coffers. It should not be water-bedded to balance off one part of the province against another. It must be market driven and must be sensitive to global prices for forest products.

Market Access: Two critical issues threaten market access for forest products to international markets. These are the Canada-US Softwood Lumber Agreement (or its successor) and environmental certification of our forests. Public policy must address these issues.

An Attractive Investment Climate: Punitive tax rates, government interference, public debt and government waste are the antithesis of an attractive investment environment. The government should review and reduce the provincial sales tax and fuel taxes as these contribute to making the BC industry the highest cost producer. To attract new investment to the province the corporation capital tax should be removed and corporate income taxes adjusted to competitive levels for all companies. There should be a concerted effort to pay down public debt.

Forest Renewal BC: The super-stumpage level for FRBC should be reviewed and reduced. All FRBC expenditures should be directed only at land-based projects investing in silviculture, forest health, and growth and yield improvement of the forest. The value-added business unit and community component should be scrapped. The FRBC corporation should be wound up and the revenues directed through an extension branch of the ministry of forests for reinvestment on a regional basis.

A Skilled Work Force: A major investment must be made in providing training and education for the new forest economy. As new products and processes emerge together with technological innovations, the labour force must be well educated in wood technology, electronics, engineering sciences and the information technologies.

An economy moving strongly forward through the implementation of the points raised above will ensure that the other expectations of British Columbians such as healthcare, job security and education will once again become affordable. Then today's families will flourish and the government will meet their changing needs ensuring that tomorrow's families will prosper.

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